There Are Still Deals in Value Stocks: Gabelli

Although it is harder to find a bargain on value stocks than it was a year ago, investors can still find a deal in some infrastructure companies. So Mario Gabelli of Gamco Investors told CNBC at Berkshire Hathaway's annual shareholder meeting Friday.

Gabelli said the infrastructure companies are benefiting from a turn in the economy.

"When we were here last year we said fiscal and monetary policy are going to work, well, they are working. And the reports and earnings that you are getting in now underscore that companies have their break on cost, volume is picking up, gross margins are improving, SG & A* is down, and profits are exploding," said Gabelli.

Recommendations:

In the rail industry Gabelli recommends GATX , a small-cap company that manufactures rail cars.

In the airplane industry Gabelli recommends vendors to Boeing , such as Crane and Precision Castparts .